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When a company's receivables are used as security for a loan, the company is said to have _____ its receivables. multiple choice question. sold pledged secured factored

Sagot :

When a company's receivables are used as security for a loan, the company is said to have pledged its receivables.

Accounts receivable pledging occurs only when any business uses its accounts receivable asset as collateral on any loan, generally a line of credit.

When accounts receivables are used in this given  manner, the lender only limits the amount of the loan to either:

70% to 80% of the total amount of outstanding accounts receivable or

a percentage of the accounts receivable which declines based on the age of the receivables.

To know more about pledging of recievables here:

https://brainly.com/question/15013724

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